NMDC targets Rs13,500-cr turnover for current fiscal

Country’s largest iron ore miner NMDC has set a target of Rs 13,500 crore in turnover for the current fiscal, the government said on Monday. The state-owned firm has signed a pact with the government according to which it has also set a production target of 350 lakh tonnes in the current fiscal, Minister of State for Steel Vishnu Deo Sai said in a written reply to the Lok Sabha.

According to the agreement, NMDC will make a capital expenditure of Rs 3,767 crore in the 2015-16 fiscal. The company has set a gross operating margin target of Rs 9,450 crore. Its turnover in the 2013-14 fiscal was Rs 12,058 crore. Full year results for last fiscal are yet to be announced. However, the company is currently facing the heat on account of falling iron ore prices in the international market. It had to cut prices by up to 20 per cent in a mid-month review on April 18. 

In the international market the price of the steel- making raw material came down to a decade low of $47 per tonne owing to higher supply and subdued demand from China, the largest consumer of iron ore and producer of steel. 

Meanwhile,  shares of the state-run mining company plunged over 5 per cent on Monday, leading to an erosion of Rs 2,755 crore from its market valuation, after the company slashed iron ore prices by up to 20 per cent. The scrip tumbled 5.20 per cent to settle at Rs 126.80 on the BSE. During the day, it fell by 5.71 per cent to Rs 126.10. On the NSE, the stock plunged 5 per cent to close the day at Rs 126.75.

NMDC was the biggest loser among the 50-Nifty scrips. Following the dip in the stock, the company’s market valuation declined by Rs 2,755.4 crore to Rs 50,272.60 crore. In terms of volume, 2.79 lakh shares of the company changed hands at the BSE and over 31 lakh shares were traded at the NSE during the day.